As the housing market continues to experience its share of changes and downshifts, a new report released by ATTOM Data Solutions shows that the rise in US foreclosures experienced a modest slowdown last month.
In its July 2022 U.S. Foreclosure Market Report, the organization found that 21,428 U.S. properties had foreclosure applications (notices of default, scheduled auctions, or bank foreclosures) in July, It showed a 4% decrease from the previous month.
Foreclosures continued to surge compared to last year, when the federal moratorium was still in place, although monthly activity dropped slightly. Last month’s foreclosures increased him 226% year-over-year, ATTOM reports.
Experts say the decline in July reflects a return to season momentum in the third quarter of the year, which typically sees a lull in foreclosures and completions.
Key highlights:
- Delaware, Illinois, and New Jersey had the highest foreclosure rates.
- In July 2022, 1 in 4,628 homes nationwide was foreclosed.
- Foreclosure initiations increased monthly in 21 states nationwide.
- The number of foreclosure completions decreased by 5% from last month.
- Lenders have remanded 3,068 US properties through Foreclosure Completed (REO) in July 2022.
Key takeaways:
Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, said: “In eight of the last decade, foreclosure activity was lower in the third quarter than in the previous quarter, so we may be returning to a more normal seasonal pattern of delinquencies and defaults. “
“Several states appear to have yet to catch up on processing foreclosures on loans that were severely delinquent prior to the pandemic, which explains the sharp year-on-year surge in foreclosure initiations. ‘ added Sharga. “However, early-stage delinquency rates continue to be lower than normal, so it will be interesting to see if foreclosure initiations are significantly reduced once these older loans reenter the foreclosure process.”